MINISTER OF STATE IN THE MINISTRY OF FINANCE
(a): Reserve Bank of India (RBI) has informed that Three Ombudsman Schemes of RBI, viz., Banking Ombudsman Scheme (BOS), 2006, (as amended upto July 01, 2017), Ombudsman Scheme for Non-Banking Financial Companies (OSNBFCs), 2018 and Ombudsman Scheme for Digital Transactions (OSDT), 2019, were in force until November 11, 2021, for enabling resolution of complaints relating to services rendered by Regulated Entities. On November 12, 2021, the ‘Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021’ has been launched which integrates the erstwhile three Ombudsman Schemes of RBI viz., BOS, OSNBFC and OSDT. Complaints not covered under the erstwhile Ombudsman Schemes/ RB-IOS, 2021 were/are handled by the Consumer Education and Protection Cells (CEPCs) of RBI across the country. The number of complaints received under various categories in the erstwhile three Ombudsman Schemes for the last two years and under RB-IOS, 2021 since its implementation is at Annexure.
(b) & (c): RBI has informed that on comparing the complaints against ATM/Debit Cards, Credit Cards and Mobile/Electronic Banking during the period from 2019-20 to 2020-21, there is a decline of 13.01% complaints in ATM/ Debit Cards and there is an increase of 12.01% and 52.99% complaints in Mobile/Electronic Banking and Credit Card respectively.
Complaint categories April 1, 2019 to March 31, 2020 April 01, 2020 to
March 31, 2021 Percentage
increase/decrease
ATM/ Debit Cards 69,205 60,203 -13.01%
Mobile/Electronic Banking 39,627 44,385 12.01%
Credit Cards 26,616 40,721 52.99%
TOTAL 135,448 145,309
Reserve Bank of India (RBI) vide its circular dated 6th July, 2017 has issued guidelines for safeguarding the customers while handling the cases of unauthorized electronic banking transactions, which inter-alia addresses the following areas:
I. Strengthening of systems and procedures
II. Reporting of unauthorized transactions by customers to banks.
III. Limited liability of a customer.
IV. Reversal timeline for zero liability/limited liability of customer.
V. Board approved policy for customer protection.
VI. Burden of proof on banks.
VII. Reporting and monitoring requirements.
RBI has also informed that they have issued a circular on Strengthening of Grievance Redress Mechanism in Banks dated January 27, 2021, for strengthening and improving the efficacy of the grievance redress mechanism of banks and for facilitating better customer service.
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Annexure
Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 824 for 07.02.2022 tabled by Shri A. Raja and Shri A. Ganeshamurthi, MPs.
(i) Complaints received under the erstwhile BOS, 2006 from April 01, 2019 to November 11, 2021
Complaint Categories April 01, 2019 to March 31, 2020 April 01, 2020 to March 31, 2021 April 01, 2021 to November 11, 2021
ATM/ Debit Cards 69,205 60,203 30,472
Mobile / Electronic Banking 39,627
44,385
28,262
Credit Cards 26,616 40,721 24,678
Failure to Meet Commitments 22,758
35,999
22,076
Non-observance of Fair Practice Code 40,124
33,898
24,478
Levy of Charges without Prior Notice 17,268
20,949
12,732
Loans and Advances 14,731 20,218 11,282
Non-adherence to BCSBI Codes 11,758
14,490
4,646
Deposit Accounts 10,188 8,580 6,137
Pension Payments 6,884 4,966 4,262
Remittances 4,130 3,394 2,149
DSAs and Recovery Agents 1,474
2,440
1,622
Para-Banking 1,134 1,236 761
Notes and Coins 551 332 189
Others 30,844 39,686 26,448
Out of Purview of BO Scheme 9,412
10,250
6,397
Total 3,06,704 3,41,747 2,06,591
(ii) Complaints received under the erstwhile OSNBFCs, 2018 from July 01, 2019 to November 11, 2021
Complaint Categories July 01, 2019 to March 31, 2020 April 01, 2020 to March 31, 2021 April 01, 2021 to November 11, 2021
Non-adherence to FPC 4,516 17,915 12,339
Non-observance of RBI directions 841 6,114 1,876
Levy of charges without prior notice 1,053 3,189 1,673
Non-transparency in contract/ loan 1,285 1,833 509
Delay in repayment of deposits 269 536 317
Delay in release of securities/ documents 206 417 282
No communication about loan sanctioned 342 375 263
Delay in payment of interest 105 386 181
Non-understandable or no
adequate notice on terms and conditions 52 145 89
Non-understandable or
non-issuance of sanction letter/ terms 31 85 46
Not covered under Clause 8 of the Scheme 292 1,169 1,573
Others 1,939 4,787 855
Total 10,931 36,951 20,003
*The Complaint Management System (CMS) of RBI has been launched on June 24, 2019. Hence, data on complaints prior to July 01, 2019 is not available.
(iii) Complaints received under the erstwhile OSDT, 2019 from July 01, 2019 to November 11, 2021.
Complaint Categories July 01, 2019 to March 31, 2020 April 01, 2020 to March 31, 2021 April 01, 2021 to November 11, 2021
Fund Transfers/ UPI/ BBPS/ Bharat QR Code
827 1,775 1,020
Mobile/Electronic Fund Transfers / Mobile/Electronic Banking
440 824 522
Non-reversal of Funds due to Wrong Beneficiary Transfer by System Participant 170 291 191
Prepaid Payment Instruments (PPI) 148 253 222
Violation of RBI Directives in relation to Fees/Charges 29 100 67
Out of Subject 52 57 28
Others 184 294 223
Total 1,850 3,594 2,273
*The Complaint Management System (CMS) of RBI has been launched on June 24, 2019. Hence, data on complaints prior to July 01, 2019 is not available.
(iv) Complaints received under the RB-IOS, 2021 from November 12, 2021 to December 31, 2021.
Complaint Categories November 12, 2021 to December 31, 2021
Non-Adherence to Fair Practices Code 902
Loans and Advances 806
Mobile/Electronic Banking 441
Non-adherence to BCSBI Code 402
ATM/CDM/Debit card 362
Deposit account related 286
Failure on commitments 228
Credit Card 193
Pension 116
Levy of Charges without prior notice 92
Para-Banking 47
Remittance related 31
Others 837
Total 4,743
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